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Avis Zur Grenz Berschreitenden Nutzung Marktf Higer Wertpapiere Nach Dem Korrespondenz Zentralbankmodell CCBM  Form

Avis Zur Grenz Berschreitenden Nutzung Marktf Higer Wertpapiere Nach Dem Korrespondenz Zentralbankmodell CCBM Form

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the paper we're looking at today tackles the question how do you judge which estimate is most accurate when the quotequote true beta is like this invisible Source we can't actually see it's a real head scratcher it's a challenge that's kind of plagued Finance for a long time a lot of the past approaches they try to compare estimates to Future betas assuming that those would be close to the real thing but that assumption in and of itself you can never really test it so this paper tries to completely sidestep that problem okay so how do they s skip it well instead of trying to chase this true beta they came up with a way to judge the estimates on their own Merit so to speak interesting and they use what they call a single index representation of returns

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